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View Diary: Drained retirement funds signal acute looming crisis (286 comments)

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  •  Digby has some great investment advice today (4+ / 0-)
    Recommended by:
    kck, JVolvo, Words In Action, Odysseus
    •  Standard very good advice for the average worker. (2+ / 0-)
      Recommended by:
      JVolvo, Inland

      People here will disagree that maxing your 4011k - AND never ever making an early withdrawal (a spate of homelessness is easier while young than at 80!)  - but none will have a better alternative.

      •  YMMV: for me and mine, it made sense (2+ / 0-)
        Recommended by:
        Aquarius40, kck

        but that's with a thirty year perspective, great matching and personalities best suited for autopilot.

        Other people can do well in real estate, trading, or just plain working for wages.  

        Schedule permitting, PROOF WILL BE PROVIDED ON HOW I AM BEING "CONSTANTLY CALLED OUT" AND "UNIVERSALLY RECOGNIZED" FOR BEING BAD. Moreover, the dossier on my activities during the Bush administration will have an appendix concluding that I am Wrong.

        by Inland on Wed May 07, 2014 at 12:35:13 PM PDT

        [ Parent ]

      •  How about homelessness at 50? (6+ / 0-)

        That's when the need to withdraw hit me. Loss of full-time employment, multiple major market crashes, need for cash outlays to save sanity and health. Couple all that and $1000 each annual medical insurance bills for me and my spouse for 15 years.

        Quadruple whammies. All at the worst possible time. If you have to take out cash at the bottom of the market you will NEVER get it back.

        Welcome to my world.

    •  That is all well and good (23+ / 0-)

      If your wages are in at least the top 40th percentile. Someone who makes the median income does not have enough to max out their 401K (if they even have one) AND put away 20%?? Are you kidding?

      Single person grosses $2500/mo. Take home: $2,000. Rent: half. Food: 25%. Gas: 10%. Left over? $300, to pay utilities, health care, student loan debt and anything else. It's a ridiculous dream to think that anyone can save today, much less 20%. That index card is written by someone who has no clue.

      Money should be treated like any other controlled substance; if you can't use it responsibly then you don't get to use it.

      by La Gitane on Wed May 07, 2014 at 10:20:40 AM PDT

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      •  Single folks today with that kind of income (9+ / 0-)

        - are piled into shared apartments to chop that rent down.  or living with mom and dad.

        I've never paid more than $400 for rent for myself, but I've rarely been without a room-mate or three or four, either.

        The only real privacy I get is at my office, since my bedroom is shared with my husband. And most folks don't even have that luxury.

        The Cake is a lie. In Pie there is Truth. ~ Fordmandalay

        by catwho on Wed May 07, 2014 at 10:37:43 AM PDT

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        •  I'm in SoCal (7+ / 0-)

          And you're lucky to find a room or a studio for less than that, that isn't roach infested.

          And I do know middle aged folks who have roommates. Pretty sad actually.

          Money should be treated like any other controlled substance; if you can't use it responsibly then you don't get to use it.

          by La Gitane on Wed May 07, 2014 at 10:47:34 AM PDT

          [ Parent ]

          •  I once split a bedroom with my best friend (5+ / 0-)

            Two bedroom townhouse for $1000/month.  We shared the master bedroom (it had two closets) in a dorm style setup, with me in a loft and everything, and the smaller bedroom was rented to a third person.    Our rent was $300/month, the third person paid $400.

            We purchased our house in 2010.  To help with the mortgage, we eventually took on two room mates.  The going rental rate for houses in our tiny neighborhood was $1200/month.  (Our actual mortgage is a little over half that.)  I think we charge $250/month + utilities for each room mate, and put that toward our housing/improvement fund (a huge chunk of which just went to a giant early mortgage payment.)  

            The Cake is a lie. In Pie there is Truth. ~ Fordmandalay

            by catwho on Wed May 07, 2014 at 11:06:49 AM PDT

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        •  I did it on -at best - $2000 (6+ / 0-)

          though I wouldn't recommend it - I did have to make some sacrifices, but mostly I refused to give in to society. For example, in San Francisco it is assumed that an automobile costs $7000 a year. I paid about $500 on bus fare. Society expects us to do many things that are simply a waste of money, and very many things that are, if you think about it, not worth what they cost.

    •  Both the NYT advice and her desire (0+ / 0-)

      to keep social programs sound are good.  

      Schedule permitting, PROOF WILL BE PROVIDED ON HOW I AM BEING "CONSTANTLY CALLED OUT" AND "UNIVERSALLY RECOGNIZED" FOR BEING BAD. Moreover, the dossier on my activities during the Bush administration will have an appendix concluding that I am Wrong.

      by Inland on Wed May 07, 2014 at 12:32:44 PM PDT

      [ Parent ]

    •  Quibble with Point 3, but sure. (1+ / 0-)
      Recommended by:
      grover

      Most of that is sound, and would be vastly better than what people do now.

      But the "justification" for point 3 is just ignorant.

      the person on the other side of the table knows more than you about their stuff
      It's not at all hard to find better and worse individual stock investments.  15 minutes and 5th grade math is plenty.  Are you smarter than a 5th grader?

      -7.75 -4.67

      "Freedom's just another word for nothing left to lose."

      There are no Christians in foxholes.

      by Odysseus on Wed May 07, 2014 at 01:54:15 PM PDT

      [ Parent ]

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